You already have multiple answers to your specific question. However, I suggest you should also be checking into the multiple great 1st time buyer programs available through Federal, State, Counties, and Cities. Many of these can be compined to produce fantastic results. There is a very good chance that you could make a much bigger impact on your down payment requirement and mortgage payment by consulting a 1st time buyer specialist familiar with all of these options.
5% for conventional with certain institutions. 10% is a good place to be with a lot of the bigger lenders that I work with (BofA, WF). Most lenders offer coventional loans but you must have good credit standing and reserves. Also note that it is a very competitive market right now and sellers in SCC tend to accept the 'best and highest' offer. Not to discourage, but it is a reality that I am facing with the majority of my buyers. It's a good idea to go for a larger down payment and conventional loan on a less expensive home, than a higher purchase price and less down payment.
But not all lenders offer this program, most now require 10% down on conventional loans due to Mortgage Insurance Company overlaysâ€¦but rest assured, the 5% down loan is out there.
Contact a good mortgage broker for further details as mortgage brokers work with numerous banks and offer the most flexibility of choice. Be sure the broker you choose has established relationships with numerous banks and lending sources, as well as the ability to offer FHA programs (since FHA will may allow less down payment). The mortgage broker I choose to work with is the Loan Source in San Jose â€“ http://www.TheLoanSource.com â€“ check them out!
Hope this helps!
Of course, FHA is now the primary source of loans with less than 20% down payment. However, this week our in-house lender, Calvin Sue announced a new program through Wells Fargo Bank that could compete with FHA and not entail the difficult government requirements. I don't know the details, but call Calvin directly at 408-528-1718.
I would recommend that you find a great Mortgage Broker that knows the conventional market well. And don't be afraid to shop around!
I specialize in assisting First Time Home Buyers!
Feel free to contact us for details. You can pre-qualify or apply thru our secure website http://www.mortgagefundingloans.